Lagatar24 Desk
New Delhi, June 29: The National Stock Exchange has been fined Rs. 7 crore by the capital market regulator Securities and Exchange Board of India (SEBI) in the ‘dark fibre’ case, also known as the NSE co-location issue.
Along with NSE, the capital market regulator fined former stock exchange MD Chitra Ramkrishna and Group Operating Officer Anand Subramanian each 5 crore.
The prosecution centred on the alleged inappropriate distribution of information to stockbrokers from the market exchanges’ computer servers.
The investigation’s main focus was on the participation of stock brokers who were allegedly given special access to the exchange’s system and quantified their gains. In addition, it fined internet service provider Sampark Infotainment and brokerage Way2Wealth brokers, respectively, 3 crore and 6 crore, according to the SEBI judgement.
According to the inquiry into the incident, Sampark is accused of having set up the co-cabling location’s so that select stock brokers experienced lower latency than other trading members linked to Sampark. According to the SEBI, the fines must be paid either by demand draught or within 45 days of receiving the order.
